Looking back on life insurance stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Prudential (NYSE: PRU) and its peers.
Life insurance companies collect premiums from policyholders in exchange for providing a future death benefit or retirement income stream. Interest rates matter for the sector (and make it cyclical), with higher rates allowing insurers to reinvest their fixed-income portfolios at more attractive yields and vice versa. Additionally, favorable demographic shifts, such as an aging population, are driving strong demand for retirement products while AI and data analytics offer significant opportunities to improve underwriting accuracy and operational efficiency. Conversely, the industry faces headwinds from persistent competition from agile insurtechs that threaten traditional distribution models.
The 15 life insurance stocks we track reported a slower Q2. As a group, revenues were in line with analysts’ consensus estimates.
In light of this news, share prices of the companies have held steady as they are up 4% on average since the latest earnings results.
Prudential (NYSE: PRU)
Recognized by its iconic Rock of Gibraltar logo symbolizing strength and stability since 1896, Prudential Financial (NYSE: PRU) provides life insurance, annuities, retirement solutions, investment management, and other financial services to individual and institutional customers globally.
Prudential reported revenues of $13.51 billion, down 2.5% year on year. This print fell short of analysts’ expectations by 1%. Overall, it was a mixed quarter for the company with an impressive beat of analysts’ net premiums earned estimates but a significant miss of analysts’ book value per share estimates.
Interestingly, the stock is up 5.2% since reporting and currently trades at $107.18.
Read our full report on Prudential here, it’s free.
Best Q2: Corebridge Financial (NYSE: CRBG)
Spun off from insurance giant AIG in 2022 to focus on the growing retirement market, Corebridge Financial (NYSE: CRBG) provides retirement solutions, annuities, life insurance, and institutional risk management products in the United States.
Corebridge Financial reported revenues of $4.42 billion, up 5.8% year on year, outperforming analysts’ expectations by 7.3%. The business had a stunning quarter with a beat of analysts’ EPS estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.9% since reporting. It currently trades at $34.12.
Is now the time to buy Corebridge Financial? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Equitable Holdings (NYSE: EQH)
Tracing its roots back to 1859 as one of America's oldest financial institutions, Equitable Holdings (NYSE: EQH) provides retirement planning, asset management, and life insurance products through its two main franchises, Equitable and AllianceBernstein.
Equitable Holdings reported revenues of $3.80 billion, up 5.1% year on year, falling short of analysts’ expectations by 4.5%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
Interestingly, the stock is up 7.2% since the results and currently trades at $54.61.
Read our full analysis of Equitable Holdings’s results here.
Lincoln Financial Group (NYSE: LNC)
Founded in 1905 by a group of Fort Wayne, Indiana businessmen who named the company after Abraham Lincoln, Lincoln National Corporation (NYSE: LNC) provides insurance, retirement plans, and wealth management products through its subsidiaries, operating under four main segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services.
Lincoln Financial Group reported revenues of $4.73 billion, up 4.4% year on year. This number topped analysts’ expectations by 1.1%. Overall, it was a strong quarter as it also put up a beat of analysts’ EPS estimates and a solid beat of analysts’ net premiums earned estimates.
The stock is up 18.7% since reporting and currently trades at $40.60.
Read our full, actionable report on Lincoln Financial Group here, it’s free.
F&G Annuities & Life (NYSE: FG)
Founded in 1959 and serving approximately 677,000 policyholders who rely on its financial protection products, F&G Annuities & Life (NYSE: FG) provides fixed annuities, life insurance, and pension risk transfer solutions to retail and institutional clients.
F&G Annuities & Life reported revenues of $1.35 billion, up 12.6% year on year. This result beat analysts’ expectations by 13.8%. It was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ net premiums earned estimates.
F&G Annuities & Life delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 6.9% since reporting and currently trades at $35.44.
Read our full, actionable report on F&G Annuities & Life here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
